FHA Construction Loan for a Fourplex?

13 Replies

Good Day,

Been calling around to different banks trying to Find a FHA One Time close/Construction loan for a Fourplex. The Banks that will do them only do SFR one's. Is this even possible? also does anyone know of a bank in VA that does them.

Hello and welcome to this site Joshua!  I hate to be the one that must inform you, if you do not already, that a Bank does whatever they feel they need take advantage of you to make their own profit and they usually give you the wrong information of how things work and nothing about how they do business.  I cannot tell you where to go but all of their employees are trained to tell you that sell there to tell you that they can only help you if you do this or that so they can make money, including a savings account.

From what I understand is that any bank should do an owner-occupant loan with 4 units as long as they do business with FHA. You might want to call a local or knowing FHA person that may tell you where to go but they may be trained not to help you.

Good luck to you!


With the one time close I think there would be less fees.

Never done a 2 close before would my GC have to qualify? Would I need 20% down for the 1st phase of the loan? Was wanting to only have the min down payment in it for the fha loan.

Yeah I’ve seen that already. Just trying to find out now if you can do this type of loan on something other then single family and also a bank that will do it. 

Called about 30 banks so far and have had no luck

Try contacting these guys.  I'm in the same boat and no one else has been able to do this loan in New York.  I have found banks in other states.


@Upen Patel Mr. Patel, I noticed you said that they will not find a lender willing to loan with 3.5-5% on a new construction 4 plex. Are there really no lenders that offer this or is it just really hard to find? Also, say there is a lender that will take 3.5-5% down - Is it possible to qualify future rental income towards the loan amount? 

@Tyler Polanco Construction loans are portfolio loans, so each lender makes their own risk decision. So there could be someone out there, but I would doubt it. Not as an owner occupied with just 3.5-5% down.

The more likely option is finding a fix and flip/hard money/private lender willing to do a ground up construction loan. Be ready to put min 10-15%.